According to The Block, the price of Bitcoin continues to trade below $90,000, currently hovering around $87,900, marking a nearly 4% decline over the past seven days. The market remains cautious as investors prepare for the upcoming Federal Reserve interest rate decision. Glassnode analysts noted that while leveraged usage has started to cool, ongoing selling pressure and increasing hedging demand indicate the market remains fragile. Institutional activity also reflects this downside risk, with global crypto ETPs recording a $1.7 billion outflow last week, and U.S. spot Bitcoin ETFs experiencing net outflows for five consecutive days, with over $1.3 billion withdrawn from the market. Jimmy Xue, co-founder of Axis, stated that the shift toward "higher for longer" interest rates by 2026 raises the bar for risk assets, and Bitcoin must now directly compete with risk-free Treasury yields approaching 4%. Data from the CME FedWatch Tool shows a 97% probability that the Federal Reserve will keep its interest rate policy unchanged during its Federal Open Market Committee meeting on Wednesday.
Bitcoin Remains Below $90,000 as Market Awaits Fed Decision
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Summary
Bitcoin remains below $90,000 amid shifting market trends, trading near $87,900 with a 4% weekly drop. Market cycles suggest caution as traders await the Fed's rate decision. Glassnode reports rising hedging demand and selling pressure. Global crypto ETPs saw $1.7 billion in outflows last week, while U.S. spot Bitcoin ETFs lost $1.3 billion over five days. Axis' Jimmy Xue notes Bitcoin now competes with 4% Treasury yields. CME FedWatch shows a 97% chance of a rate hold at Wednesday's FOMC meeting.
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